Archive for the ‘Payment Protection Insurance’ Category

The FSA(Financial Services Authority) has fined Swinton Group Ltd, the insurance broker, £770,000 for failings in the sales process of their single premium payment protection insurance.

After discussions with the the FSA, Swinton has also agreed to offer refunds to over 350,000 customers who paid for the PPI.

The FSA have found that Swinton’s PPI(Payment Protection Insurance) sales process was flawed. Swinton have been found to have unacceptable levels of non-compliant sales through including PPI automatically in their insurance quotes without first establishing a customers interest or need for the PPI cover. (more…)

The FSA asked lenders on Tuesday to identify and compensate customers that have been mis-sold payment protection insurance as part of a crackdown on bad sales practices in the industry.

The FSA have asked companies to examine PPI contracts sold directly to consumers alongside an unsecured personal loan from after July 2007 for evidence of mis-selling, and compensate affected customers.

Lenders will also have to reopen 185,000 previously rejected customer complaints about PPI.

“This is the last chance for the industry to show that it can act fairly, consistently and in the best interest of consumers on PPI,” said Jon Pain FSA managing director of retail markets in a statement.

“All firms operating in this sector should take note and where necessary get their house in order.”

The first half of 2009 saw PPI, typically sold alongside consumer loans, top the charts of the most complained about product, the Financial Ombudsman Service sstated earlier this month.